2015 Q2 Form 10-Q Financial Statement

#000073101215000060 Filed on July 22, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $355.4M $319.3M
YoY Change 11.29% 16.7%
Cost Of Revenue $304.2M $275.8M
YoY Change 10.3% 17.57%
Gross Profit $51.14M $43.48M
YoY Change 17.61% 11.48%
Gross Profit Margin 14.39% 13.62%
Selling, General & Admin $25.12M $22.24M
YoY Change 12.97% 14.86%
% of Gross Profit 49.13% 51.15%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.109M $1.800M
YoY Change -38.39% 38.46%
% of Gross Profit 2.17% 4.14%
Operating Expenses $25.12M $22.24M
YoY Change 12.97% 14.86%
Operating Profit $26.02M $21.24M
YoY Change 22.48% 8.15%
Interest Expense $200.0K $800.0K
YoY Change -75.0% 300.0%
% of Operating Profit 0.77% 3.77%
Other Income/Expense, Net
YoY Change
Pretax Income $26.26M $22.04M
YoY Change 19.12% 11.0%
Income Tax $9.969M $8.122M
% Of Pretax Income 37.97% 36.85%
Net Earnings $16.29M $13.92M
YoY Change 17.0% 7.64%
Net Earnings / Revenue 4.58% 4.36%
Basic Earnings Per Share $0.23 $0.20
Diluted Earnings Per Share $0.23 $0.20
COMMON SHARES
Basic Shares Outstanding 71.66M shares 70.44M shares
Diluted Shares Outstanding 72.29M shares 71.21M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $97.70M $68.40M
YoY Change 42.84% -19.71%
Cash & Equivalents $85.90M $57.27M
Short-Term Investments $11.80M $11.10M
Other Short-Term Assets $14.10M $13.60M
YoY Change 3.68% 38.78%
Inventory $35.40M $32.90M
Prepaid Expenses $11.99M $13.57M
Receivables $205.0M $205.2M
Other Receivables $0.00 $0.00
Total Short-Term Assets $352.3M $320.0M
YoY Change 10.07% 10.62%
LONG-TERM ASSETS
Property, Plant & Equipment $12.79M $11.48M
YoY Change 11.33% 12.56%
Goodwill $44.44M $44.44M
YoY Change 0.0% 162.09%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $40.00K $38.00K
YoY Change 5.26% 0.0%
Total Long-Term Assets $134.5M $121.2M
YoY Change 10.97% 83.31%
TOTAL ASSETS
Total Short-Term Assets $352.3M $320.0M
Total Long-Term Assets $134.5M $121.2M
Total Assets $486.7M $441.2M
YoY Change 10.32% 24.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $35.64M $47.28M
YoY Change -24.63% 51.35%
Accrued Expenses $66.70M $43.20M
YoY Change 54.4% 10.77%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $113.9M $96.14M
YoY Change 18.47% 27.73%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $82.00M $43.20M
YoY Change 89.81% 18.03%
Total Long-Term Liabilities $82.00M $43.20M
YoY Change 89.81% 18.03%
TOTAL LIABILITIES
Total Short-Term Liabilities $113.9M $96.14M
Total Long-Term Liabilities $82.00M $43.20M
Total Liabilities $195.9M $139.4M
YoY Change 40.53% 24.58%
SHAREHOLDERS EQUITY
Retained Earnings $106.6M $131.8M
YoY Change -19.08% -0.18%
Common Stock $195.1M $181.2M
YoY Change 7.72% 47.46%
Preferred Stock
YoY Change
Treasury Stock (at cost) $10.90M $11.13M
YoY Change -2.05% -2.13%
Treasury Stock Shares 1.759M shares 1.829M shares
Shareholders Equity $290.9M $301.8M
YoY Change
Total Liabilities & Shareholders Equity $486.7M $441.2M
YoY Change 10.32% 24.14%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $16.29M $13.92M
YoY Change 17.0% 7.64%
Depreciation, Depletion And Amortization $1.109M $1.800M
YoY Change -38.39% 38.46%
Cash From Operating Activities $39.70M -$3.500M
YoY Change -1234.29% -118.42%
INVESTING ACTIVITIES
Capital Expenditures -$900.0K -$1.200M
YoY Change -25.0% 71.43%
Acquisitions
YoY Change
Other Investing Activities $0.00 $700.0K
YoY Change -100.0% 250.0%
Cash From Investing Activities -$900.0K -$500.0K
YoY Change 80.0% 0.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -11.30M -10.50M
YoY Change 7.62% 3.96%
NET CHANGE
Cash From Operating Activities 39.70M -3.500M
Cash From Investing Activities -900.0K -500.0K
Cash From Financing Activities -11.30M -10.50M
Net Change In Cash 27.50M -14.50M
YoY Change -289.66% -272.62%
FREE CASH FLOW
Cash From Operating Activities $39.70M -$3.500M
Capital Expenditures -$900.0K -$1.200M
Free Cash Flow $40.60M -$2.300M
YoY Change -1865.22% -111.68%

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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2015Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2014Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
28560000 USD
CY2015Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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7000 USD
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OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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CY2014Q4 us-gaap Other Inventory
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us-gaap Payments Of Dividends Common Stock
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PaymentsOfDividendsCommonStock
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us-gaap Payments To Acquire Marketable Securities
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us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
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912000 USD
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PrepaidTaxes
0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
28000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
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us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
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us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
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CY2014Q2 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
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us-gaap Proceeds From Sale Of Available For Sale Securities
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ProceedsFromSaleOfAvailableForSaleSecurities
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us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
2546000 USD
us-gaap Proceeds From Sale Of Productive Assets
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363000 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
67000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
3834000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
4085000 USD
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PropertyPlantAndEquipmentGross
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PropertyPlantAndEquipmentNet
12772000 USD
CY2015Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
12785000 USD
CY2014Q4 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
232000 USD
CY2015Q2 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
147000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1550000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1675000 USD
CY2014Q2 us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
3000 USD
us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
4000 USD
CY2015Q2 us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
0 USD
us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
3000 USD
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
2000 USD
us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
120000 USD
us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
120000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
100237000 USD
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RetainedEarningsAccumulatedDeficit
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SalesRevenueServicesNet
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us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
631460000 USD
CY2015Q2 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
355356000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
710602000 USD
CY2014Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
22240000 USD
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2362000 shares
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
44286000 USD
CY2015Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
25124000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
51887000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1531000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1733000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P5Y
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.024
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.022
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.369
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.272
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.019
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.019
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
1767000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
41000 shares
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
26.48
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
561000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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561000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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8.24
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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6.64
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2645000 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
19.45
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
21.79
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
17.69
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
30.30
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y10M24D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y9M18D
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
1465000 shares
CY2015Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
1494000 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares
44000 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue
6.59
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
6.17
CY2015Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
6.66
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
488000 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
5.17
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
237000 shares
us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
0 USD
us-gaap Stock Issued During Period Value Dividend Reinvestment Plan
StockIssuedDuringPeriodValueDividendReinvestmentPlan
54000 USD
us-gaap Stock Issued During Period Value Employee Benefit Plan
StockIssuedDuringPeriodValueEmployeeBenefitPlan
492000 USD
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
1851000 USD
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
1701000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
4085000 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
275830000 USD
CY2015Q2 us-gaap Stockholders Equity
StockholdersEquity
290879000 USD
CY2014Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
1821000 shares
CY2015Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
1759000 shares
CY2014Q4 us-gaap Treasury Stock Value
TreasuryStockValue
11183000 USD
CY2015Q2 us-gaap Treasury Stock Value
TreasuryStockValue
10904000 USD
CY2014Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
71206000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
71140000 shares
CY2015Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
72286000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
72223000 shares
CY2014Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
70440000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
70381000 shares
CY2015Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
71657000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
71563000 shares
CY2014Q4 us-gaap Workers Compensation Liability Current
WorkersCompensationLiabilityCurrent
17748000 USD
CY2015Q2 us-gaap Workers Compensation Liability Current
WorkersCompensationLiabilityCurrent
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WorkersCompensationLiabilityNoncurrent
50514000 USD
CY2015Q2 us-gaap Workers Compensation Liability Noncurrent
WorkersCompensationLiabilityNoncurrent
56708000 USD
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments, as defined by U.S. GAAP, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. We define our marketable securities as fixed income investments which are highly liquid investments that can be readily purchased or sold using established markets. At </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">, substantially all of our cash and cash equivalents, and marketable securities were held in one large financial institution located in the United States.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our clients are concentrated in the health care industry, primarily providers of long-term care. Many of our clients&#8217; revenues are highly contingent on Medicare, Medicaid and third party payors&#8217; reimbursement funding rates. Congress has enacted a number of major laws during the past decade that have significantly altered, or threatened to alter, overall government reimbursement for nursing home services. These changes and lack of substantive reimbursement funding rate reform legislation, as well as other trends in the long-term care industry have affected and could adversely affect the liquidity of our clients, resulting in their inability to make payments to us on agreed upon payment terms. These factors, in addition to delays in payments from clients, could result in significant additional bad debts in the future.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In preparing financial statements in conformity with U.S. GAAP, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used for, but not limited to, our allowance for doubtful accounts, accrued insurance claims, asset valuations and review for potential impairment, and deferred taxes. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. We regularly evaluate this information to determine if it is necessary to update the basis for our estimates and to compensate for known changes.</font></div></div>

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